Derivatives exchange coming

Vietnam’s new derivative market will start operating on June 2, with the futures contract of share indexes set to launch first, according to the Vietnam State Securities Commission. A government bond futures product will be introduced later on, a local newspaper reported on Thursday. The Vietnam Joint Stock Commercial Bank for Industry and Trade has been appointed the sole financial institution to carry out settlements for derivatives trading. Only Vietnamese firms can become trading members on the derivative stock market, according to the country’s regulations. After 17 years of operation, the domestic stock market currently trades stocks, bonds and funds. The establishment of derivatives market is expected to provide new products for investors and boost development of the domestic bourse.